Multiple Choice
If a firm is unlevered and has a cost of equity capital 12% what would the cost of equity be if the firms became levered at 2:1?The expected cost of debt would be 8%.
A) 14.67%.
B) 16.0%.
C) 20.0%.
D) 14.0%.
Correct Answer:
Verified
Correct Answer:
Verified
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